Posted by Info BestCreditRx on Thu, May 17, 2012 @ 05:07 AM
Did you know that it’s up to you, the consumer, to be proactive and look at your credit for mistakes? The most valuable thing we have is our good name. As consumers we need to be proactive about our credit. We cannot depend of the credit bureaus to watch and fix items that are incorrect, inaccurate and false. Examples would be: our name, social security, addresses and most importantly our credit.
Unfortunately the information on our credit reports are bought and sold daily to nearly anyone who requests and pays for them. They do not always tell the full or factual story.
The credit bureaus collect and compile information about all of us. They put this information together so that financial institutions, such as banks and other creditors can see if we are good enough to extend terms to. As a note, you should limit your pulling of credit to no more than FOUR TIMES per year. Anything over this is considered excessive! Matter of fact, every time you do pull your credit, your score drops 4-7 points per pull, in the matter of seconds. It then takes weeks if not months for your credit to rebound to where you were.
The three major credit bureaus are": Experian, Equifax (also known as CSC Services) and Trans Union. These three bureaus maintain almost 90 percent of all American adults. Through the 90's, credit reports errors have been a serious problem. These problems and concerns have been taken all the up to congressional level.
Here are few statistics:
1. 29% of the credit reports contain serious errors. False Delinquencies or account that did not belong to the consumer.
2. 41% of the credit reports contain personal identifications information that was misspelled, outdated, or does not belong to the consumer.
3. 20% of the credit reports were missing major credit, loan, mortgage or other consumer account that demonstrate good credit of the consumer.
4.26% of the credit reports contained credit accounts that have been closed by the consumer but incorrectly remained as open.
Altogether, there are over 70% of errors reporting serious errors or mistakes of some kind.
Please keep in mind, that at the end of the day, it’s up to YOU to know your credit. You can go to a variety of sites to check your credit. www.annualcreditreport.com, www.creditkeeper.com, www.freecreditreport.com, www.myfico.com, etc.
Posted by Info BestCreditRx on Wed, May 09, 2012 @ 08:53 PM
We get this call alot and to be perfectly honest, we always say this... "we are a society of instant gratification. We want it yesterday and we'll pay for it tomorrow. Oh and thats 0 interest as well...."
Thats just who we are and unfortunately, this is how many of us get into trouble. We suggest our BCRx Financial Bundle to help with this and be sure to remind people, its not what you make, but what you pay off and save!
So what are some of your best options for taking care of your mountains of unpaid debt? Take a few tips from the leader in the credit repair industry for the best way to find debt relief:
Pay it yourself
If you’re feeling up to tackling the giant all on your own, you can certainly do so. Gather up all the necessary paperwork for the bills and work on a payment plan tailored for each outstanding debt you have. (BCRx Financial bundle is Awesome and the documents have helped thousands of people) Don’t be afraid to call your creditors to try and work out a payment schedule that works for the both of you. Most creditors can be pretty accommodating – especially these days, with so many people facing financial troubles.
Hire a debt settlement firm
If the very thought of even looking at your bills causes you to involuntarily shudder in disgust, consider contacting BestCreditRx to help you set up payment arrangements with your creditors and lenders. Our own service is quite skilled at settling unpaid debts for as low as .18 cents on the dollar, as well as successfully setting up agreements for credit repair to ensure those items you paid for, are either removed or updated correctly on your credit report.
If you’ve already fallen behind on your debt payments, and want to learn how to get back on track, give one of our specialists a call to find out how you can get your finances back on track and under your control.
Posted by Info BestCreditRx on Mon, Apr 30, 2012 @ 12:28 PM
Here at Best CreditRx, we are always trying to find more information that is condusive and educational for our cleints and curious consumers. Basically they are looking for more information about the credit world.
These days, credit cards are inescapable. But for consumers with either no credit history or poor credit, obtaining a credit card can be a real challenge. In cases where the issuer sees the prospective cardholder to be too risky, one option is to apply for a secured credit card. Unlike traditional credit cards, secured cards require the cardholder to put down a cash deposit that serves as collateral if the bill isn't paid on time. Typically, the deposit amount is also the cardholder's credit limit, at least at the beginning.
While secured credit cards are a relatively straightforward product, they aren't the same as prepaid cards, which apply money paid in advance to any charges incurred. Secured cards have more in common with traditional cards. Before consumers apply for a secured card they should be aware of the fine print. It pays to look for the best deal.
Check the APR
Because cardholders may not pay their bill in full or on time every month, the first thing they'll want to know is the annual percentage rate, or APR. The issuer is required by law to disclose the APR, which is typically a little higher than unsecured rates, despite the fact that the issuer is taking on less risk because of the deposit.
Compare fees
Just like other cards, secured credit cards can come with an annual fee. But there's "no typical annual fee."
While some issuers charge about $75 per year, many others choose to waive the fee. But there are other fees to consider. Overlimit charges can be as high as $25 per transaction, while late payment fees can range up to about $39 for each month the account is overdue. All of the fees are disclosed in the rates and disclosures section of the agreement. So read the fine print
Initial deposit
Generally speaking, the deposit amount is up to the consumer. According to Sklar, a few hundred dollars is typical for a deposit, and it's unusual for an issuer -- or a consumer -- to go beyond $1,000, at least when first applying for the card.
Consumers trying to improve their credit scores typically do well going with a limit of between $500 and $1,000, because that's an amount they should be able to pay off each month. If the cardholder wants to raise the limit, they should talk to the bank about increasing their deposit.
Reporting to credit agencies
Because most consumers who choose secured credit cards need to build or repair their credit, it's essential that the card issuer report the account to all three credit reporting agencies. (Reporting) is the most important part of using a secured card, because there's no point in using these cards if they don't (help improve your credit score).
Posted by Info BestCreditRx on Tue, Apr 17, 2012 @ 04:45 PM
Top 10 Reasons Why Brokers Work with a Credit Repair Company
Top 10 Reasons Why Mortgage Brokers
Should Use Credit Repair Companies!
These services make so much sense; you would assume everyone in the mortgage originating industry would be using them. However, this is simply not the case! So the question is, why not?
Let's outline the top 10 reasons why loan officers and mortgage brokers should utilize the services of credit repair companies.
1) Credit repair works!
Best CreditRx, LLC has years of experience in the credit repair industry. The credit bureaus hate us and our clients love us. We do not dispute that the client has these trade lines; we simply take the creditors and credit bureaus to task for what they report.
We use the consumer protection laws to force the creditors and credit bureaus to produce the information that they must have to verify the debt. More specifically, they must prove that everything is exactly accurate. If they do not have the documentation or they reported something incorrectly, by law they must remove it!
Knowing the specifics of the ever-changing laws is crucial. Now if the consumer knows the in's and out's of the laws as well as P&A; and has years of experience doing this workday in day out, they could possibly get the same results. They can also represent themselves in a court of law, do their own taxes and sell their own homes. But they hire attorneys, accountants, and realtors everyday to get the job done most effectively and as quickly as possible.
2) Credit repair makes a client's credit better.
Best CreditRx, LLC primary focus is credit score improvement. This is done by removing negative items on the client's credit report as well as educating the client on how to use credit to positively affect credit score. The value of our advice can last a lifetime.
3) When negative items are removed, they stay away.
After we have removed negative items from a credit report it is always possible that the original creditor can re-report the negative item. However, this is rarely the case. Given that the original creditor generally will only hold the debt for 4-6 months, they do not waste the time or the money to check on these items and re-report them. What typically happens is that the debt is sold or transferred to a collection agency, which will re-report them in an effort to pressure the client to pay the debt. When this occurs we can go back and dispute the items under the same dispute that removed them in the first place.
4) Removing old negative items improves scores.
35% of your client's scores are based on these derogatory items. This is the biggest chunk of the credit score pie! The less derogatory items they have, the higher their score can be. On average, our clients see a 40% cleanup in the first 45 days.
5) It frees up your time if you are trying to repair your client's credit yourself.
Consider this, as a loan officer you are paid to originate loans. The more loan volume you write, the more money you make. A simple business concept called "leverage" dictates that the way to make the most money is to spend your time doing the things that generate the most income for your business. For you, that means meeting with clients and taking applications.
Show me a loan officer who processes their own loans and I will show you a loan officer who does very few loans. Focus on the things that pay you the most money for the time you spend doing them and delegate the other tasks to people who are proficient at those activities. How many times have you spent hours trying to repair someone's credit only to be unsuccessful or have him or her go somewhere else to get the loan?
Allow Best CreditRx, LLC to be your "Ace in the Hole" for all of your short term and long-term credit score improvement needs.
6) The client saves significantly more compared to the cost of service.
Given the tremendous impact credit score has on a person's overall financial life, the question really is, how can your client afford not to contract with Best CreditRx, LLC? Credit affects your client's mortgage payments, car payments, credit card payments as well as auto&homeowners insurance, and the list goes on. If we improve your clients credit score 50-100 points, how much can you lower their monthly mortgage payment?
7) Not everyone you work with has great credit.
If you have been in the mortgage business for 10 years or more you are seeing more bad credit reports than you probably ever have. With the coming changes in the bankruptcy laws this trend will only increase. Currently at least half of people in the market for loans are candidates for sub-prime mortgage products.
8) At Best CreditRx, LLC, we can be trusted.
Every industry has people who do not operate in the utmost professional manner. Best CreditRx, LLC looks upon this as a tremendous opportunity to distinguish us. In addition, a lot of the negative stigma in the credit industry about credit repair companies is hyped up by none other than the credit bureaus themselves.
Think about it for a minute. A dispute by a consumer or a credit repair company is going to add overhead to the credit bureaus operations. If the dispute process is successful, then the consumer will not be applying for credit as often because they do not need it as much. This reduces the credit reports sold by the credit bureaus. Is it any wonder that the credit bureaus would create bad press about credit repair companies?
9) Three out of ten clients are loan worthy in the first 45 days!
There are many credit repair companies who only work on 1-3 negative trade lines at a time until they are removed. If the client has 20-40 negative trade lines, which is not uncommon, this could easily take 2-3 years. Given this, we understand why you might feel the process takes too long.
At Best CreditRx, LLC, we pride ourselves on speed and are not limited to a couple of trade lines per bureau per month. We give you the ability to receive automatic email notifications each time your client's file is updated. You can login to a portal and track each client you have sent to us, no matter how many there are. Proper follow-up is KEY to closing more loans.
10) It is important to care even if you cannot close the loan this month.
In certain situations we may be able to bring the score up in 30-45 days to get a loan done. If it can be done, we are uniquely qualified to get it done. However, the goal of our service is to increase the scores 50-100 points in 90-120 days. This may allow you to do a band-aid loan today and guarantee a second transaction in the future. In addition, the long-term loyalty this creates between you and your client will keep them coming back to you for life.
Mortgage Partners find more information here.
Clients get more information here Free Consultation
Don't send clients to Best CreditRx, LLC because you have nothing better to do with them. Rather, you send them to Best CreditRx, LLC because you care enough about their future.
Posted by Info BestCreditRx on Thu, Apr 12, 2012 @ 02:05 PM
More and more homeowners are facing foreclosure on their properties these days. Their credit scores have been hurt dramatically by overleveraging the household with too much debt and now they are facing tough times in just making the mortgage payment to their lender. We continue to hear from clients "my options are gone and I have no other choice but to lose my house to foreclosure".
This does not have to be the case. Yes, many will lose their homes, but in doing so you can get a fresh start on building strong credit again and get yourself in position within a few years to buy a new home again.
In the mean time, here are a few options to consider when thinking about foreclosure:
- Have you attempted to REFINANCE your home loan? A new loan with lower interest rate terms can bring that payment down to an amount you can handle with your existing income.
- Ask you lender about a REPAYMENT PLAN! If you have got behind on your mortgage, many lenders are willing (if you ask) to restructure your back payments to be repaid over a longer period of time. Sometimes as long as 6-12 months to repay. This can give the homeowner the opportunity to get their finances back in place and get on top of their payments.
- Ask your lender about FORBEARANCE! You have to ask your lender if they offer this option, but it can allow for missed payments to be added to the end of your loan and thus extend the time you finance your home purchase. During the interim you can get your credit scores back in shape and look for another lender to REFINANCE your property at lower interest rates.
- Request a MODIFICATION to your existing loan. There is a big government push for lenders to modify existing loans to keep you in your property. If you meet certain financial requirements you can get your existing loan modifed down to as low as a 2% interest rate. This can dramatically lower your payments.
- Consider a SHORT SALE. If your mortgage company agrees, you can avoid the negative hit on your credit score from a foreclosure by selling your home at value less than your mortgage loan amount. You then can get out of your home and into a rental until such time that your credit health is strong again and you are ready to make your next purchase.
- DEED FOR LEASE may be another option. In this option, you turn over your home to the lender but the lender allows you lease the home from them for a period of time and keep your family in the property you have been so accustomed to living in.
- DEED-in-LIEU of FORECLOSURE is an option that allows you to avoid the negative impact to your credit report while turning over your home to the lender and walking away from your obligations to the high mortgage. You don't get to keep your home, but you do get to save your credit. You may also be eligible for relocation assistance and even money to walk away and put yourself into a rental property without anything out of pocket.
It is important you research your options for all opportunities to save your credit and your financial resources that are available. Don't forget that experts are there to help throughout the process. Fannie Mae, Freddie Mac, and even HUD-approved housing counselors can help.
Posted by Info BestCreditRx on Mon, Mar 19, 2012 @ 08:40 PM
There are Millions of people today suffering from too much debt and not enough good credit. The Credit Crisis of 2007-2009 has put consumers in tough position to lower that debt because they were overleveraged to their homes value. Consumers relied on the value of their home to make up the money they were spending on credit cards while overleveraging their household budget to the max.
Many of those consumers now face tightening household budgets and no way to get back on top of their outstanding debts. Consumers are more and more frequently relying on their cash and debit cards to make purchases they need while avoiding purchases they just want. The consumer is gasping for breath and not sure where to turn for help.
There are thousands of non-profit consumer credit counselors and agencies that offer free support to consumers to get their financial house in order. Credit counselors can provide support in dealing with creditors and helping the consumer put together much needed financial budgets which allow them to live within their means. At the end of the day these credit counselors can help you manage your money better. They are an invaluable tool in helping to educate families on how to manage their budgets and live a more comfortable life without going further into debt.
The process begins with creating a personal budget that shows your income and your expenses so you have better knowledge of where your money is going day to day. Check out some of the free tools on this website to help you get your budget in order. Sign up here for those tools. They will show you how your income and expenses are easier to control when you know where your money is going. There are so many people out there that have lost control of their money and spend most of the time between paychecks wondering if they will have the money for all of their needs let alone their wants.
Credit counselors are there to help. They have helped hundreds if not thousands of people in similar circumstances to deal with their financial problems. They will reach out to your creditors to make an agreement with your creditors to create a viable and sustainable budget that helps you pay down your debt. In addition to reviewing all financial data and make recommendations on how best to tackle your current debt, credit counselors should work with you on your long term financial goals and planning for future expenditures like your children’s college education.
Consumer credit counseling services will help you make arrangements with creditors that will allow you to meet your budget every month. This will help stop the threatening phone calls and letters and give you the opportunity to make payments that work for your family. They can also help you avoid legal action by some creditors while you figure out how you can bring your debts under control.
Again, many credit counseling programs from local governments are FREE to you. However, you can also pay professional credit counseling service providers and credit repair companies to do similar negotiations on your behalf and help get your credit health back. Make sure you check and compare the costs of credit counseling services and credit repair companies as there is a big range in costs from one to the next.
Credit counseling works best when you are honest with yourself and with those you choose to help with your credit and debt problems. Credit counseling and credit repair companies can give you the best advice and help you reach your financial goals only when they see your entire credit picture. Be honest and proactive and listen to the experts. You can check out the US Justice Department list for state by state listing of consumer credit counseling service providers. http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm
Posted by Info BestCreditRx on Wed, Feb 22, 2012 @ 09:23 PM
How can you reduce your debt through credit card consolidation?
More and more people are falling into debt due to the existing liquidity crunch. People are trying their best to stay out from debt but the economic situation has still not improved and the cost of living is getting higher day by day. So, most of the people are turning to free credit card consolidation. However, the government has introduced new regulations in regards to credit card consolidation. The new regulations have been introduced after consumers have repeatedly complained about the problems they face in settling and consolidating their debts. How to consolidate credit card debts? You can consolidate your debts either on your own or with the help of a debt consolidation company. If you have credit card debts only, you can do balance transfer in order to consolidate all the debts into a single debt. Transfer balances from all high interest cards to a low interest one. Thus, the interest on your debts is lowered. You can also take out a debt consolidation loan to pay off your credit card debt. Or else, if you don't have time to consolidate debts on your own, you can take the help of a debt consolidation company. The counselor will negotiate with your creditors to lower the interest rate and consolidate your debts. Credit card consolidation - what happens in it? When you try to consolidate your credit card, you merge all your debts into a single account and treat it as one. If you are taking help of a debt consolidation company, the debt consolidation company will reduce the current rate of interest by negotiating with your creditors. Since the interest rate gets reduced, the monthly payment is reduced too. You are then enrolled in a credit card consolidation program, where you are required to make the payments through a new repayment plan. You will have to make the payments to the consolidation company and instead of making several payments each month, you can now make a single payment each month.
However, if you are opting for a consolidation loan, you take out a loan that is equal to the outstanding balance of debts that you have. You can either take out a secured consolidation loan or an unsecured one. In secured consolidation loan you will have to keep your assets as collateral but in case of secured consolidation loan, nothing is kept as collateral. Thus, it is better to take out an unsecured consolidation loan in order to consolidate your credit card debts.
www.bestcreditrx.com
Posted by Info BestCreditRx on Fri, Feb 17, 2012 @ 08:24 AM
Great question... Many of our clients have been asking this lately and we're going to ablige them...
In most cases, bankruptcies will remain on a credit report for 10 years following the discharge of the bankruptcy. Other entries remain for about 7 years from the date of the last activity. This means that, generally, the 7-year clock is reset whenever you generate any activity on a non-delinquent account, including making a payment. But once the account has gone and remained delinquent, the clock cannot be reset. Some unscrupulous creditors will try to reset the clock by reselling the account, but this is not correct. The FTC has made their position clear on this.
Current law generally prohibits consumer reporting agencies from including in a consumer report accounts placed for collection or charged to profit and loss which predate the report by more than 7 years. The law now specifies that the seven-year period with respect to information concerning a delinquent account charged to profit and loss may begin no more than 180 days after the commencement of the delinquency.
Congress intended to establish a single date --the start of the delinquency --to begin the obsolescence period (7 years plus 180 days). This avoids the "multiple date" problem that arguably existed prior to the 1996 amendments to the law. Thus, the date of the "commencement of the delinquency" that led to the creditor's chargeoff or collection action would be the earliest date from which the account was continuously delinquent, plus 180 days.
The start of the 7 year period is now described with some precision by the statute, and subsequent events, including sale of the charged off account by the creditor, or a payment, or a dispute about the account by the consumer, do not change the allowable reporting period.
There is an exception for chargeoffs or collections that were first reported before December 29, 1997. Adverse information such as collections or chargeoffs reported before December 29, 1997, are not subject to the new "commencement of the delinquency" provision, and can be reported for 7 years from the date the creditor actually charged it off.
If you have further quesitons or concerns about this, please do not hesitate dropping us and email. We'll be glad to help...
Posted by Info BestCreditRx on Fri, Feb 10, 2012 @ 09:24 AM
Good Morning and Welcome! Many people have have had many quesitons about the FCRA. Not only is this informaiton in our "Resources Tab" but we're going to break it down a bit so that its not so "Legal."
Basically the FCRA wanted to address credit issues and provide a remedy to consumers for poor record keeping on the part of the credit reporting agencies. The US Congress first passed the Fair Credit Reporting Act (FCRA) in 1971. Since then, it's been revised and refined several times, most recently in 1997. The laws established by this act require the credit reporting agencies to remove all obsolete, inaccurate, irrelevant, outdated, misidentifying, incomplete, incorrect, erroneous, and misleading information from their credit reports.
Specifically, if the completeness or accuracy of any item in a consumer's file at a credit reporting agency is disputed, the agency should re-investigate free of charge and record the current status of the disputed information and/or delete the item before the end of the 30-day period. The time begins on the date on which the agency receives the notice of dispute.
In addition, the credit reporting agency shall promptly provide notification of any dispute to anyone who provided any item of information in dispute. If an item is found to be inaccurate or incomplete or cannot be verified, the credit reporting agency shall promptly delete the item, or modify the item, as appropriate, and notify the consumer no later than 5 business days after the completion of the re-investigation.
The credit reporting agency must also provide the consumer with notice that a description of the procedure used to determine the accuracy, including the business name, address and telephone number of any furnisher of information, must be made available to the consumer upon request. This description of the re-investigation procedure must be provided within 15 days of the request.
The relevant laws are found in United States Code, Title 15, Chapter 41, entitled Consumer Credit Protection. The laws relating specifically to credit bureaus are found in Subchapter III of the above cited chapter, entitled Credit Reporting Agencies. The laws which detail requirements relating to information contained in credit reports is found in 15 USC § 1681c. The laws which require the credit reporting agencies to assure maximum possible accuracy are found in 15 USC § 1681e.
If you should have more questions you can click below to be taken to that page:
Posted by Info BestCreditRx on Wed, Feb 01, 2012 @ 05:57 AM
Your credit score is likely the most important three-digit number in your life.
Your score affects how much you pay for credit, and it can affect other bills you pay, where you live and where you work.
- Banks and credit card companies review your score when deciding whether to extend you credit and how much interest to charge.
- A high score can lead to lower car- and home-insurance premiums, a deposit waiver from utility companies and a better service package from the cell-phone company.
- Many landlords check credit scores before allowing you to sign a lease.
- Many employers do credit checks on prospective employees.
With so much at stake, it's wise to find out where you stand and take steps to raise your score if it's below 700, particularly before you apply for a mortgage or other loan. Above 760 and you're in the upper echelon. A score below 620 tells people you're not a good risk and dooms you to credit denial or subprime interest rates.
And don't be surprised when the low end credit score of 620 is increased to a minimum of 640 to get approved for a home loan. The mortgage lenders and Fannie Mae and Freddie Mac have already said that higher scores will be required in the future to get approved to buy a new home.
Credit requirements are tightening everywhere. Why? Risk. Scores below 680 are considered much more risky then those over 680 when it comes to whether or not you are going to pay your monthly obligations or not.
Every time you make a late payment your score drops. Every time you pull your credit your score drops. When your balances on credit cards goes above 30-40% of your total avaialable credit, your score drops.
So what do you do? Pay your bills on time. Don't apply for credit at every store you shop. Don't let your credit line creep up on you. Pay down your cards. Make payments on time and don't get credit at every Tom Dick and Harry you shop at.