Credit Repair After The Holidays

Credit Repair After The Holidays

Credit Repair After Christmas The holidays are a wonderful time of the year filled with family time and joyful experiences.  They can also be a time when extended travel, purchasing gifts and other expenses can take a toll on debt loads and credit scores. Additionally, the holidays are also a notoriously popular time for credit card fraud, identity theft and other white collar crimes.  In this article we will cover some tips for how to stay within your limits this holiday season and also how to recover if you are a victim of a crime that impacts your credit score. Holiday Budgeting It can be easy to get carried away during the holiday season, maxing out credit cards and wearing savings thin to pay for extra travel expenses and to get the perfect gifts for your loved ones.  The following are some tips for keeping your financial standing upright leading into the New Year. Make a Budget – Set up a holiday financial plan that includes planned and unexpected expenses Be Frugal with Travel – Traveling during the holidays can be the most expensive time of the year.  Look for the best all inclusive deals or stay with relatives to keep costs down. Don’t Max Out Cards – Instead of maxing out one credit card use other options such as store lines of credit to level out the debt to income ratio   What to Do if Your Information Gets Stolen If you have your identity stolen or your credit card number used fraudulently during the holiday season, it can have a major impact on your credit score.  The first thing to do is close your credit cards and notify the bank of the situation.  The next thing you need to do is follow the steps for identity theft recovery.  Refer to our series of articles on Identity Theft for more help. After you have done this be sure to consult with credit repair specialist about restoring your score.  Reach out to an expert on our credit repair hotline when you are ready.  Call us...

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Secrets For Repairing Credit After Bankruptcy

Secrets For Repairing Credit After Bankruptcy

A Few Quick Tips for Rebuilding Credit Post BK Despite how overwhelming bankruptcy may be on your credit, there are a few lesser known secrets that can help you rebuild and quickly repair your credit score.  There is not an exact order in which these steps should be followed; however every single one of these actions will help improve your credit score.  Over time, with good borrowing and spending habits, it is possible to 100% recover from a bankruptcy filing regardless if it is chapter 7 or 13.   Open a Bank Account – Make Timely Payments This may seem very obvious; however you would be surprised how many individuals post-bankruptcy move to a “cash only” system.  While there is absolutely nothing wrong with this philosophy, if the goal is to rebuild credit, using cash only to make payments will not help the process. Regardless if it is a checking or savings account, opening a bank account and using it to pay bills will keep your payment history visible to creditors and lenders.  This is a good thing from a credit score standpoint.  Remember from What Makes Up a FICO Credit Score that payment history is the largest factor at 35% of the credit score.   Open Credit Cards (3 is Magic #) The ideal situation is to open credit cards right before or during bankruptcy because prior to the BK showing up on your credit report it will be easier to get approved for unsecured lines of credit.  However based on amount owed, this may not be possible.  Post-bankruptcy if you cannot get approved for any unsecured credit card, go with a secured credit card, a opposed to cash.  This is the type of card that requires you to deposit funds in an account to establish spending limits.  It may seem somewhat futile; however this goes a long way to helping show credit worthiness. Additionally it is better to have small balances on credit cards instead of having them maxed out or zero.  Also be careful when applying for multiple cards in a short period, as this will generate inquires which will actually negatively affect your credit. Become an Authorized User on a “Good Credit” Account This does not give you access to the funds on the account, however it does allow you to borrow the good credit of the account holder.  This is an easy one to do as long as you...

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Mortgage Resolution (Litigation)

Mortgage Resolution (Litigation)

Definition: Mortgage Resolution, also commonly referred to as Mortgage Litigation is the examination of loan documents for the prevalence of fraud in the origination or implementation of the loan. Legal recourse is then sought against the lender based on the findings. It is not a loan modification and the results are typically a lot more impressive. The legal recourse that can be sought is a substantially lower mortgage payment, principal reductions, cash settlements or rescission of the original loan. Between 1999 and 2008 over 80% of all loans were found to have violations. The loan resolution process will find the violations in a loan and provide clients with experienced attorneys for representation against lenders. When loan violations are discovered, the lender will possibly receive penalties and fines. Facing possible penalties lenders will come to the bargaining table. Mortgage Resolution is both the process of pre-litigation and litigation by licensed attorneys against mortgage lenders. The pre-litigation process starts by identifying violations that may have occurred in the origination, implementation, execution or recording of the loan. Over the course of the last 10 years nearly 80% of all mortgage loans have substantial violations. Some of these violations are found in Real Estate Settlement Procedures Act, Truth in lending, appraisal fraud, HUD-1 disclosures, The Home Owners and Equity Protection Act, Mortgage Electronic Registration System improperly foreclosing on properties, failure to record with the SEC or the local county recorder’s office, claiming insurance on your loan and still attempting to collect on the loan. These are just a few of the violations that may exist in your loan. Some of these violations are felonies. Once violations are discovered and a resolution strategy is determined, attorneys then draft a demand letter seeking specific legal recourse. The demand letter will summarize to the lender violations found related to the loan and will include, when applicable, an econometrics damages estimate and a determination of what type of reformation or rescission action sought. You might ask why this is important to you. In the event you have you have violations, which 4 out of 5 loans that are reviewed do, then you now have leverage against you lender to settle the law firm’s demands. You may have fraud (civil and/or criminal) perpetrated against you and the law firm will use this as leverage to settle with your mortgage company. As stated before the results could include a...

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Identity Theft Statistics

Identity Theft Statistics

Identity theft is becoming one of the fastest growing crimes in the United States.  Arizona is the highest ranked state in identity theft at 142 victims per 100,000 people.  Arizona, California, Texas and Florida are always at the top due to having a large amount of people entering the country illegally needing new identities. With advent of advancing mobile technology and the internet, both fraud and identity theft have been on a steady rise for the last several decades.  In the year 2000 Fraud and ID theft crimes were 230,628 in the United States.  By 2009 this number had risen to 1,330,426.   Some Quick Identity Theft Stats: An identity theft victim will spend an average of 175 hours and $800 trying to clear up their record.  It can take months or even years to resolve it. The FTC claims that 9.91 million American’s are identity theft victims each year Losses total $52.6 billion Social Security numbers cost roughly $49 on the black market A driver’s license is roughly $90 Birth certificates are about $79 It is believed that in 2005, an identity was stolen every four seconds   Identity Theft Complaints by Age <19         =    7% 20-29    =    24% 30-39    =    22% 40-49    =    19% 50-59    =    15% 60-69    =    8% 70+         =    5%   Have you suffered from identity theft? Are there any criminal uses we missed? Please share your story or comments below.  Thanks – TDN  ...

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Fair Debt Collection

Fair Debt Collection

Fair Debt Collection Practices Act Against the backdrop of the recent recession, many people, through no fault of their own, are finding themselves in situations where they cannot afford to pay their bills. This all-too-familiar scenario has created a surge in consumer collection accounts as well as a rising number of complaints about overly aggressive bill collectors and their abusive tactics. In March of 2011, the Federal Trade Commission (FTC) released a Congressional report that demonstrated that in 2010 there was a 17 percent rise in the number of complaints involving consumer fair debt collection. Moreover, complaints about third-party bill collectors rose by a stark 25 percent. Overall, in 2010, consumer complaints about abusive and unlawful debt collection practices superseded every other compliant category except for identify theft. Perhaps not surprising because of easy access, the most frequent occurring complaint about these debt recovery agencies was telephone harassment of the debtor. Other complaints included the misrepresentation of amounts owed, demanding unlawful fees, contacting the consumer during prohibited times and more. The except above is from the Lexington Law Blog to view entire post please visit their site by clicking here...

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