How to Write a Credit Repair Letter

January 25th, 2011

You’ve discovered that you need to remove bad credit from your reports. You know you need to write a credit repair letter and now you have “writer’s block,” right?

Writing a credit repair letter is a very important step in taking responsibility for your financial future. Before you begin writing you want to make sure you have a copy of your credit report from all three credit bureaus. You will have to write to each of them separately. Each bureau is a separate company and will have different information listed about you.

Here are the credit bureau addresses you will need:

Equifax Mailing Address
P.O. Box 740241
Atlanta, GA 30374

Trans Union Mailing Address
P.O. Box 1000
Chester, PA 19022

Experian Mailing Address
P.O. Box 2002
Allen, TX 75013

Credit Repair Letter

How to Write a Credit Repair Letter

You can find samples of credit repair letters online but here is a list of information you will definitely need to include.

Identifying information
When writing a credit repair letter to the credit bureaus be sure to include your full legal name, your social security number, your current address and a copy of your driver’s license or passport.

Account information
Include as much information about the account in question as possible in your credit repair letter. Definitely include the name of the entry, the name of the original creditor, the name of the collection agency and the amount owed.

Your dispute
Incorporate into the letter as professionally as possible why you are disputing the entry on your credit report. If the entry is invalid, provide all documentation supporting your argument. If the entry is being reported inaccurately you must have copies of the proof you have collected to support your claim.

It never hurts to quote laws that protect your rights. Not a lawyer, that’s ok. You can use FCRA Section 609 for starters.

For example, “Under the Fair Credit Reporting Act (cite the paragraph or sentence that applies) this item is being reported inaccurately.”

Organization
You should mail your letters and copies of documentation to the three credit bureaus using certified mail through the postal service. You will have peace of mind know the bureaus received your letter. Keep copies of all correspondence in a safe place. It might take more than one attempt to get the desired result you are seeking.

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Finding Credit Repair Services in Miami

January 21st, 2011

Looking a reputable credit repair company in Miami? You’re in luck because there are true, legitimate, no scam credit repair lawyers in the Miami area.

Miami Credit Repair Services

Lexington Law Credit Repair Services for Miami Residents: Dial: 1-866-246-7311

If you have bad credit and you’re living in the Miami area, then certainly you’ve discovered just how difficult it can be to get a home loan, auto loan or other new credit.

Despite what your local banker has told you, it is legal to erase charge offs, judgments and even bankruptcy from your credit report.

The trick is to find the right program. Most often the challenge is in finding a legitimate, no scam, credit repair program. In my opinion, there is only one such program in Miami – Lexington Law 1-866-246-7311.

How do I find a good credit repair professional in Miami?
Don’t use the Yellow Pages! It is littered with fly-by-night credit repair services. A big red flag you’ll see is that these Miami credit repair professionals will promise the Moon and fall short on delivering results.

The best – and only way in my opinion – to find Miami Credit Repair is to rely upon a referral from a trusted friend or family member. The trick is the you’re probably embarrassed to discuss your need for credit repair with friends and family.

That’s where I come in. I used Lexington Law and got phenomenal results. You’re free to read my whole nightmare story at the home page of my blog.

The short version is that Lexington brought my score up to 745 from 582 – and erased nearly all of my charge offs, late payments, and collection items. It took about 4 months to have them totally clear my credit. The bottom line is that if you’re seeking a reputable credit repair firm in Miami, look no further.

You can call Lexington Law at no cost 1-866-246-7311 – for a no obligation consultation. Get started today – credit repair does take time so moving quickly on this will pay you big rewards in the future!

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What is the Effect of a Charge Off on Your Credit Score?

January 19th, 2011

If you have a charge off on your credit report, perhaps you’re wondering just how much it will effect your credit score? Can you still get new credit even if you have a charge off? Maybe just one or two charge offs won’t hurt your score that much?

Sadly, there is no concrete answer to how much a charge off effects your credit score. Exactly how one negative item will affect your credit score is somewhat of a mystery and has been the subject of much criticism of the three main credit bureaus. The bureaus use top-secret algorithms to calculate your credit score.

In other words, the bureaus don’t want you to know how a charge off on your credit report affects your credit score. We DO know that it will differ from one person to the next.

To determine how much that charge off is damaging your credit score, consider these factors:

Your Payment History
Payment history refers to how you have been paying your bills and installment loans. How often have you missed payments? How long have you let payments fall past due? 30 days? 60 days? More than 180 days?

This pertains not just to the charge offs – which usually indicate a late payment of 180+ days, but your other accounts.

Has anyone sued you for payment? Have you also defaulted on a student loan or a car loan? If you have any of these negative entries on your credit report then your score is already in the dumps and a single charge off will only lower it 10-15 points.

On the other hand, is your credit report in good shape other than the charge off? If so, then expect that charge off to lower your score at least 50 points.

Other Amounts Owed
This not only refers to the obvious: how much money do you owe your creditors but also how much do you owe in relation to the credit limits on your accounts.

Are your credit cards maxed out – BAD!
Do you have a lot of “cushion?” – GOOD!

How many accounts do you have that show unpaid balances? Even if you’re paying your bills on time, if you have a large number of bills they could be affecting your credit score negatively and lenders see you as a risk.

Length of credit history
This is a BIG factor! How long have been responsible (or irresponsible as the case may be) with credit? If you’re 18 years old or somebody who refuses to use credit cards, then don’t expect to have a good credit score.

Does your credit report show you as being a trust worthy borrower? How about new credit? Have you been applying for lots of credit recently?

Having a number of hard inquiries flags lenders that you might be looking to make a number of large purchases or maybe you are short on cash and need to open credit to make ends meet in the short term.

(By the way, here is how to remove inquiries from your credit report).

Here’s the bottom line: No one can tell you exactly how much one charge off will lower your credit score but the people at Lexington Law Office know more than anyone. Since you already have one charge off, it’s probably a good idea to get a consultation on your entire credit report. They are available to advocate from 5 am west coast to 9 pm west coast time.

We used them – and it worked! You can see us in our new home – purchased with a 6.25% mortgage here.

Check out this video on how to remove charge offs:

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Using Section 609 to Fix Bad Credit

January 18th, 2011

Section 609 can be interpreted to read that: You can challenge every single piece of information on your credit report. One of the greatest consumer protection tools available is the right to ask creditors for verifiable proof that what are reporting what they should be reporting.

If you’re looking to use Section 609 to fix bad credit, it’s time to roll up your sleeves. I’m not a huge advocate for do it yourself credit repair when it comes to tough items like judgments, charge offs, and repossessions, but DIY credit repair can work for late payments and slow pays. It’s going to take a lot of time and work but few things are more rewarding than fixing bad credit.

Section 609 of the Fair Credit Reporting Act gives you the right to dispute items on credit reports. Here’s the kicker: AND it allows you the right to have all items on your credit report verified by the three major credit bureaus. – Experian, Trans Union and Equifax.

In writing and mailed certified through the U.S. Postal service you have a right to ask each of the bureaus to verify any listing. There have been instances where the credit bureaus neglect to defend the listing on the report and thus are required by law to delete it from the report entirely. When that happens, YOU WIN!

Section 609 Verification Requires Proof
A credit reporting agency must provide you with documentation to prove a debt or derogatory item is yours. Documents include a loan agreement or application from the creditor. It is your right to have them provide valid contracts and transactions between you and the original creditor.

A credit repair service is a good idea if you have stubborn items and are confused about where to start. Requesting a credit reporting agency to provide you with verifiable proof on your accounts is a lengthy process.

If you feel this task is beyond your comfort zone there are professionals who do this sort of work day in and day out. We suggest Lexington Law Office. Why Lexinton Law, because we used them and they worked! Check out the whole story on our blog home page.

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How to Find the Best Credit Repair Services

January 17th, 2011

If you’re in the market for a reputable credit repair service, you might be thinking: “I don’t want to get scammed!”

If this is on your mind, don’t worry, you’re not alone. And there are reputable companies who stand above the shady fly-by-night credit repair services that prey on unsuspecting consumers.

Rest assured that you’ve made a wise decision to enlist the services of a pro. Getting charge offs, judgments and even bankruptcy removed from your credit report are time consuming and technical. Understanding consumer rights requires education. Consulting a professional is often the best course of action.

Lexington Law invited me to visit their offices in Salt Lake City, Utah

Lexington Law invited me to visit their offices in Salt Lake City, Utah

Finding a Credit Repair Company that’s not a Scam

Here are some tips in finding a reputable service: (1) A good credit repair professional will not promise a quick fix to bad credit. Credit repair takes time and any service worth its salt will manage your expectations up front; (2) A reputable service hires credit attorneys; (3) a reputable service charges an affordable monthly fee so you can cancel at anytime.

I found all of these qualities in the Lexington Law Firm – I even visited their offices when I was a client! Few other online credit repair companies invite you to their offices!

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How to Repair Bad Credit from Defaulted Sallie Mae Loans

January 16th, 2011

Among other things, when we actually reviewed our credit reports with a fine tooth comb, we realized we had been 30,60,90 days late on our private Sallie Mae student loans. We have only ourselves to blame, but the six months or so after graduating college were tough on us financially.

Nonetheless, the damage was done and we had to repair the bad credit from our Sallie Mae student loans. We had to get to work quickly if we wanted to get in that new home anytime soon.

We soon discovered that being delinquent on a Sallie Mae student loan will cause serious problems for you.

How bad can your credit get from a Sallie Mae Loan?
One of the most expensive and embarrassing practices is when they contact your employer about your debt. They are not shy about this. In fact, they will even demand that your employer withhold money from your paycheck to collect!

This is called administrative wage garnishment. It is completely legal and it can be devastating for you. Another very expensive method for Sallie Mae to recoup their payment is to keep all of your tax returns until the debt is repaid. You could go 15 years with no tax refund!

You can panic and request to see documentation regarding the defaulted loan but it will not delay the actions. Are you in big trouble? Yes, if you do nothing. It is very intimidating to feel up against the Salle Mae’s student loan collectors. They’ve backed you into a corner.

What you should do to resolve your bad credit with Sallie Mae
If you have received a notice from the Sallie Mae that they are planning to take action against you contact them at once! They are usually more than happy to arrange a repayment agreement with you.
Since it is likely for a student loan, you’ll have more options than if negotiating with a credit card company.

The goal of the department of education and the collection agency is to collect their money! Sallie Mae offers a student loan rehabilitation program. In most cases, if you pay the desired amount on time each month not only will you avoid wage garnishment but after 12 months of paying on time they will update your credit report. The status on your Sallie Mae account will read, “Pays as agreed.” You must enter into written repayment terms with the creditor and make your first payment before action is taken against you! Act quickly.

This is exactly how we resolved our delinquent Sallie Mae student loan and is a completely legal way to erase bad credit.

We also arranged for a “step” re-payment plan. We paid less while we were fresh out of college with the agreement to pay more per month down the road once we were more “established” financially.

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How to Dispute Experian by Phone

January 15th, 2011

How to File a Credit Bureau Dispute by Phone

There are three ways to file a credit bureau dispute with Experian – (1) phone; (2) online; (3) by mail. If you prefer to dispute over the telephone. Here’s what you need to know:

Be prepared for your phone dispute
When filing a phone dispute with Experian you will need to have a lot of information at the ready. You must have a copy of your recent credit report from the particular credit reporting agency you are calling. You will be asked for your credit report number.

This is like a gatekeeper. It is Experian’s way of forcing you to purchase a credit report from them. (NOTE: disputing Experian by mail is free – you don’t need to purchase a credit report!)

If you do have a recent credit report, you will need to provide your social security number, date of birth and your current address. Also, you’ll have to have the name of the company whose entry you are disputing. Provide the account number for the account in question and the reason for your dispute.

Why Disputing Experian by Mail is Best
All correspondence regarding your credit should be in a letter form and mailed via certified mail from the postal service. The credit bureaus would like you to use their online system or file a dispute over the phone but don’t do it.

A mail dispute allows you to tell YOUR STORY!

Incorporate into the letter as professionally as possible why you are disputing the entry on your credit report and include any supporting documentation you have. How do you include supporting documentation over the phone? It’s impossible.

If the entry is being reported inaccurately you must have copies of the proof you have collected to support your claim. Supporting documents are very, very important to your dispute. It never hurts to quote laws that protect your rights. For example, “Under the Fair Credit Reporting Act (cite the paragraph or sentence that applies) this item is being reported inaccurately.”

Again, you should mail your letters and copies of documentation to the credit bureau using certified mail through the postal service. You will have peace of mind know the bureau received your letter. Keep copies of all correspondence in a safe place. It might take more than one attempt to get the desired result you are seeking.

I grew tired of standing in line at the post office and paying $4.85 for each piece of mail I sent to the credit bureaus. That’s one reason why I ultimately just had Lexington Law send out all the dispute letters for me. It was definitely worth the small investment, having a credit repair attorney do the work got the results I was looking for. See the whole story here: www.creditforcouples.com.

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How to Deal with a Medical Collection on Your Credit Report

January 13th, 2011

So you’ve had an injury or medical illness and now you’re stuck dealing with all the financial fall-out. After an injury or illness, who wouldn’t want to deal with a medical collection on their credit report?

It’s safe to say that medical providers, insurance companies, creditors, and credit bureaus can weave a complicated and messy web of financial reporting. That’s why it’s no surprise if you discovered your credit score was ruined by a collection or medical charge off on your credit report.

What happens most often is a doctor’s office sends off bills to the insurance company. The insurance company, trying to protect their profits (and cover-their-behind) denies payment.

Now what?

You find yourself getting past due bills from the doctor’s office while arguing with the insurance company to pay the bill. Meanwhile, the accounts receivable clerk at the doctor’s office has turned the account over to a collection agency. And now it’s on your credit report affecting your credit score. What should you do?

Step One: Use Debt Validation to Remove a Medical Collection
Medical billing can be very complicated. – Codes, explanation of benefits, etc. Most of us are not familiar with the terms they use on our bills. Also, one car accident can result in bills from six or seven different practices! It is very difficult to keep track of whether or not your claims are getting paid by the insurance company. Also, people make billing mistakes! A shortcut to clearing up this confusion is to write a letter to the collection agency and ask them to validate the debt. Let’s not waste our time fixing a problem that belongs to someone else.

Step Two: Negotiate to Erase the Medical Collection
Just like any other debt, try to negotiate with both the medical office and the collection agency. Perhaps this medical bill was the result of a crisis – an accident. Appeal to their humanity and see if they are willing to negotiate a lower payment and remove the derogatory item from your credit report. Every conversation you have with the original creditor and collection agency should be done in writing and mailed certified from the post office. Get any new payment terms in writing.

Know your rights about a medical collection on your credit report
It’s very complicated and you might be better off enlisting the help of a professional credit repair attorney but there are laws about medical information and your credit report. Sometimes the mere threat to a collection agency that they are violating HIPPA regulations by divulging medical information on your credit report can get you results.

The average collection agent is not well versed in HIPPA and to avoid a lawsuit regarding the violation of your privacy might be just the incentive they need to remove the derogatory item from your credit report.

We had several medical collections on our credit report as the result of sloppy billing by our doctor. Even these small co-pay amounts of $25-50 can damage your credit score. Get started by disputing any medical collections or charge offs. Lexington Law erased our charge offs and collections with Debt Validation – an advanced yet powerful technique. You can learn more about how debt validation works by dialing: 1-866-246-7311.

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How Successful is Lexington Law?

January 5th, 2011

Since my wife and I decided to write about our experiences with the Lexington Law Firm, we’ve been inundated with emails asking us: “Just how successful is Lexington Law?”

If you haven’t yet read our credit repair story (www.creditforcouples.com), then I’ll remind you that Lexington increased my credit score from 582 to 745 inside of 4 months. They improved my wife’s score to 763, which is considered Tier A+ credit. (Remember, we were not starting with decent credit either. We needed a LOT of help with charge offs, collections, and late pays).

You might be saying: “But MY credit is different.” You’re right. Everybody’s case is unique. That’s why I decided to write about the AVERAGE results of a Lexington client. I hope this answers the question of just how successful Lexington Law is.

First, know that a reputable credit repair professional will not promise a quick fix to bad credit. Lexington doesn’t make any promises, but the results of their past clients have to speak for themselves.

On the other hand, a sure sign of a credit repair scam is a company who makes specific promises to get you to enroll in their program.

Lexington Law’s Success
Lexington Law Office offers no flashy schemes or promises. They just put forward their statistics. The number of negative items they have deleted from consumers’ credit reports are staggering.

In 2009 alone they removed over one million negative items.

The most impressive bit of information you’ll ever hear about Lexington Law is that in 2009 they were able to remove over 3,200 bankruptcies and 674 foreclosures from credit reports. There are hundreds of lexington law testimonials written by real people who have used Lexington Law.

How much will Lexington Law Cost?
If you don’t fix your credit it can easily cost you hundreds of thousands of dollars over the course of your life. The cost for Lexington Law to repair your credit starts at just $39.95 per month. These are attorneys working tirelessly for you for only $39.95 a month. Try beating that price with a local attorney!

They have a wide range of service options depending on your needs. They also offer discounts for spouses – $50.

How Long Does Lexington Law Take
This is why we liked Lexington Law. They are very clear about the need for time to fix your credit report. They offer a refund policy but they ask you give the process adequate time to see results.

In other words, there is no such thing as overnight credit repair. There is, however, credit repair that is quick, effective, and efficient. In our case, once our attorney determined that one technique wasn’t going to work, he quickly moved onto the next – such as debt validation which he used to eliminate a cell phone charge off from all 3 bureaus.

One more statistic I discovered for you: Lexington is removing an average 156 negative items an hour. It took us an hour just to find the addresses to the three major credit bureaus!

The numbers of scenarios that affect your credit score are countless. If you just want to talk to somebody, tell them your story, and see if they can help, there is no charge for the consultation. We initially spoke with “Beth”, a super friendly and enthusiastic paralegal there. Her direct line is: 1-866-246-7311.

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Buying a Home with Charge Offs on Your Credit

January 4th, 2011

First, the good news: Nobody knows what it’s like to try and buy a home with charge offs on your credit history like we do. My wife and I had dozens of charge offs and collections on our credit reports when we applied for our new home mortgage.

Second, the bad news: mortgage lenders will probably NOT approve your home mortgage if you have charge offs on your credit. However, don’t give up. You can legally and ethically delete almost any questionable charge off and get into that new home!

If your experience is like ours was, your home buying process went something like this:

  • You and your partner go to open houses and get excited to buy a house
  • You find a house you REALLY want, but don’t have financing yet
  • You go to bank and they run your credit report
  • The banker dude or lady comes back and tells you how bad your credit is
  • You think…”Oh SH&T, how am I going to get that house?!”

If you’re thinking – “YEAH, THAT happened to me.” Here is some advice from experience:
Get a pro to handle the mess of removing the charge offs and other nasty items. We tried sending out credit repair letters, but only dug a deeper hole.

You need to know HOW to dispute bad credit. (You can’t over-dispute or else your file gets a RED FLAG attached to it, which makes credit repair way more challenging.)

We used Lexington Law who got rid of our charge offs just in time to close on a new home in the suburbs of Rochester. (See the full story of how we bought our house with bad credit here)

If you’re the forward thinking type and have planned ahead and you know SOMETIME IN THE FUTURE you’ll need to get your credit in shape to buy a house, then the next paragraph is for you:

Don’t ignore those charge offs – Act Now!
Ok, you’ve got a couple options to remove those charge offs. Again, we used Lexington Law who does more than just file dispute letters. Removing these chargeoffs can be like a science.

They used debt validation and a few other more ‘underground’ methods when a dispute letter just doesn’t cut it. If you’re curious about how it’s done, you can give our paralegal – Beth – a call. Here’s her direct line: 1-866-246-7311.

Finally, some good news again: You’re planning ahead. Since charge offs are one of the biggest reasons consumers are denied home loans, it is good idea that you’re taking steps TODAY to get into that new home!

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