How Much Are Negative Items Hurting My Credit Score?

Every inquiry on your credit report can lower your score by up to 3-7 points, which can add up fast. For example, if you have 5 to 10 inquiries on your report right now – you could be losing out on 35 to 70 points from your credit score.Collections are even worse. A single collection could lower your score by up to 50 to 100 points, and if you have multiple collections then you could be losing out on HUNDREDS of points from your credit score.

Is It Really Possibe To Remove These Negative Items?

YES! A little known fact is that many companies perform a credit inquiry on your report without having proper consent. If this is the case, then they are violating a federal law called the Fair Credit Reporting Act (FCRA).Debt collectors are also bound by the FCRA, as well as the FDCPA (Fair Debt Collection Practices Act). They must be able to provide proof that you owe the debt, they must be legally allowed to collect the debt, they must be licensed to collect in your state, and the list goes on. But who makes sure they are following the law? You do!As a consumer, you have the legal right to dispute the validity of any collection, inquiry, or account on your credit report. Upon doing so, the debt collector or the company who performed an inquiry must provide documented proof that they have followed all applicable laws and regulations. If they fail to provide this proof, then the credit bureaus are required to remove the negative items from your credit report – thus raising your credit score.You’re probably wondering if this a difficult and time consuming process — it is, if you try and do it all by yourself. But that’s where DisputeBee makes your life a lot easier.

Are There Any Tricks To Making This Work?

Anyone can open a dispute online with the credit bureaus, and it almost never works. The online system is designed to work against you (the consumer). It’s not surprising, because credit bureaus are in the business of putting information ON your credit report, not taking things OFF your credit report.If you see any questionable information on your credit report (such as potentially inaccurate or erroneous collections or inquiries), the trick is to send a physical letter demanding proof and challenging the legality of the collections and inquiries in question. If they fail to provide adequate proof within 30 days, the credit bureaus must remove those negative items from your credit report.

Ok, So What Should I Do Next?

DisputeBee – Credit Repair does the hard work for you, such as generating the proper letters that are carefully crafted to maximize your chance of a successful dispute. All you have to do is print the letters and mail them. There’s no complicated sign up process, and no need to call a salesperson for a consultation. Here’s what you’ll do next:

How to protect youself against Identity Theft. Also what to do if you should become a Victim of Identity Theft .

Tips for Fraud Victims

If you believe you are a victim of fraud, you may find the following suggestions helpful:

Protect Yourself – First, make sure a security alert or victim statement is on file with all national credit bureaus.

Inform the Creditor – Contact each creditor with the fraud account and inform them that the account is fraudulent.

Document all Contacts – Make notes of everyone you spoke with; ask for names, department names, phone extensions; record the date you spoke to them.

Understand the Process – Each creditor may have a different process for handling a fraud claim. Make sure you understand exactly what is expected from you, and then ask what you can expect from the creditor. At the conclusion of an investigation, ask the creditor for a document that states you are not responsible for the debt.

Follow Up – Make sure everything a creditor/credit bureau has requested is received. It is always a good idea to place a follow up call or send a letter for confirmation.

Review Reports Regularly – Obtain another report several months AFTER you believe everything is cleared up. If a new fraudulent account is discovered, you know how to handle it. If your credit report is back to normal, you can feel confident that all issues were resolved as you expected. It would be a good idea to check your credit report again in six months and a year later.

Don’t Throw Away Files – Keep all notes and correspondence in an accessible file in case they are needed in the future.

Experian’s fraud protection practices

We strive to protect your credit information with the following practices:

* We drop several digits from each of your credit account numbers on your personal credit report.
* We do not display on your personal credit report the Social Security number that you provided to us when you requested your report.
* We build sophisticated fraud products to assure the integrity of our credit database and to protect consumers and creditors.

* We continually monitor access to our database with sophisticated software, so that if unusual activity occurs, our security and fraud control department investigates immediately.

* We work with law enforcement authorities to catch fraud criminals.
* We require a business to designate a permissible purpose under federal law before they can access consumer credit information.
* We follow extensive procedures to assure that we accept only reputable businesses as our customers.
* We build extensive barriers to prevent computer hackers from accessing consumer credit data.

Just because you have a poor credit report doesn’t mean you can’t get credit. Creditors set their own standards, and not all look at your credit history the same way. Some may look only at recent years to evaluate you for credit, and they may give you credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.

If you’re not disciplined enough to create a workable budget and stick to it, to work out a repayment plan with your creditors, or to keep track of your mounting bills, you might consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But remember that “nonprofit” status doesn’t guarantee free, affordable, or even legitimate services. In fact, some credit counseling organizations — even some that claim non-profit status — may charge high fees or hide their fees by pressuring consumers to make “voluntary” contributions that only cause more debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

If you are considering filing for bankruptcy, be aware that bankruptcy laws require that you get credit counseling from a government-approved organization within six months before you file for bankruptcy relief. You can find a state-by-state list of government-approved organizations at http://www.usdoj.gov/ust, the website of the U.S. Trustee Program. That’s the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees. Be wary of credit counseling organizations that say they are government-approved, but do not appear on the list of approved organizations.

Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and can help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

What we can do for you!
Dirtybadcredit.com is about giving you the information and knowledge to help you succeed in your personal financial success. The word “credit” plays such an important role in a adult’s financial success however, at the same time most adults do not understand what the word “credit” actually means.

So From a financial standpoint credit decides where you live, what kind of car you drive, where you shop, and credit can even decide your job, the bottom line is that if you don’t understand credit, then you need to start today!

That is where Dirtybadcredit information comes in handy . We are a free blog site dedicated to give you the knowledge and understanding of the credit industry so that you have the ability to decide your credit and your financial future.

Have you ever heard the quote, “knowledge is power?” Well credit knowledge is is the key to your financial future, credit score, credit cards, improving credit, building credit, buying a house, buying a car, leasing an apartment or even finding a job. We will help you understand not just what to do in each situation but how to succeed in each one. Once you have the finical knowledge you need then you have the power to change your financial future.
If you have a unique situation or question regarding credit contact us, we will do our best to get you the knowledge, so you have the power!

Admin Dirtybadcredit.com

How to Prevent Fraud Against Homeowner Associations

Fraud on a homeowners association hurts all of the homeowners and makes the association board look bad. It’s a financial loss, of course, but it also causes suspicion and mistrust of the board members, as well as the sense of guilt the board members feel for failing to prevent it. The most common fraud against these organizations involves conflict of interest, bribery and illegal gifts, false reimbursement of expenses, over billing, check tampering and cash theft.

1.
Step 1

Require two board members’ signatures on all checks and account transfers over a certain amount. No single person should be able to make the decision to pay a large bill or move a significant amount of the association’s money around. A common limit is $500. Many routine bills, such as utility payments, may approach this amount, but paying larger items should be a shared responsibility. Also, don’t give over the check signing or bank transfer authority to an outside manager.
2.
Step 2

Avoid making checks out to cash or having board members sign blank checks for later payment. It’s tempting, with busy schedules, to have some checks pre-signed so the board officer responsible for issuing checks doesn’t have to hunt down a co-signer at an inconvenient time. Don’t give in to the temptation. The convenience is not worth the risk of signed checks getting into the wrong hands or being misused.
3.
Step 3

Obtain multiple bids for all major contracts and check references. Make it a policy to avoid conflicts of interest by not soliciting or accepting bids from board members, their friends or relatives. Open bidding keeps all contractors on the same level and makes it possible for the board to objectively compare the bids and get the most competitive price.
4.
Step 4

Set low limits on any credit cards issued to board members or association employees. It’s also a good idea to have a different board member approve payment of the card expenses than the one who makes the charges.
5.
Step 5

Review thoroughly invoices and supporting documentation before signing payment checks. The same is true for reimbursement checks to board members, employees or homeowners who make purchase on behalf of the association. Also, make sure any work done by vendors is inspected and satisfactorily completed before paying an invoice.
6.
Step 6

Keep association records up to date and require regular financial reports at each board meeting. Reconcile all bank accounts monthly, and segregate responsibilities by have a different board member reconcile the bank than the one who pays the bills.
7.
Step 7

Keep a minimum of petty cash and have board members count it periodically on an unannounced basis.

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